T he 4S Web-Marketing Mix model Efthymios Constantinides

Electronic Commerce Research and Applications 1 (2002) 57–76
www.elsevier.com/locate/ecra
T he 4S Web-Marketing Mix model
Efthymios Constantinides
Department of Technology and Management , University of Twente , Enschede , The Netherlands
Accepted 10 April 2002
Abstract
This paper reviews the criticism on the 4Ps Marketing Mix framework, the most popular tool of traditional marketing
management, and categorizes the main objections of using the model as the foundation of physical marketing. It argues that
applying the traditional approach, based on the 4Ps paradigm, is also a poor choice in the case of virtual marketing and
identifies two main limitations of the framework in online environments: the drastically diminished role of the Ps and the
lack of any strategic elements in the model. Next to identifying the critical factors of the Web marketing, the paper argues
that the basis for successful E-Commerce is the full integration of the virtual activities into the company’s physical strategy,
marketing plan and organisational processes. The four S elements of the Web-Marketing Mix framework present a sound and
functional conceptual basis for designing, developing and commercialising Business-to-Consumer online projects. The model
was originally developed for educational purposes and has been tested and refined by means of field projects; two of them
are presented as case studies in the paper.
2002 Elsevier Science B.V. All rights reserved.
Keywords : E-Commerce strategy; E-Commerce marketing; Web Marketing Mix; 4S model
1 . E-Commerce landscape in transition wave Web gold seekers struggle for survival by
downsizing, streamlining processes and cutting costs,
A recent report [1] predicts a Web population of while academics, consultants, analysts, managers and
over the 1bln users in 2005, while many indications journalists try to figure out what went wrong and
point to an upcoming fast growth of E-Commerce ascertain the lessons to be learned from the present
revenues and a growing consumer willingness to Web dejection. Learning is particularly important for
engage in online transactions [2,3]. the survivals of the crisis and the incumbents, who
For the 210 Internet companies (a large percentage will be the next to join the virtual marketplace [6].
of them publicly traded) that shut their virtual doors Analysing the causes of the Internet crisis Christ-
in the year 2000 and the one dot.com that daily goes ensen [7] argues that the major factors for E-Com-
out of business since the beginning of 2001 [4,5] this merce failures are the lack of awareness by many of
kind of news sound a bit beside the point. In the the Internet players as to the basis of their industry
Internet after-the-gold-rush period many of the first competition and the failure of several businesses to
exploit new technologies in a sustainable manner [8].
Lack of strategy and clear objectives [9], old-fashion
E-mail address : [email protected] (E. Constan-
tinides). product orientation, limited understanding of cus-
1567-4223/02/$ – see front matter 2002 Elsevier Science B.V. All rights reserved.
PII: S1567-4223(02)00006-6

58 E . Constantinides /Electronic Commerce Research and Applications 1 (2002) 57 – 76
tomer needs and poor commercial competencies are outspoken critics of the 4Ps from the Relationship
¨
also frequently mentioned as issues having con- Marketing angle is Gronroos [12] who is identifying
tributed to the continuing dot.com demise. An im- several reasons against using the 4Ps as a planning
portant, though less visible and often overlooked tool for marketing. He argues that the model has
source of problems for the Internet players is the become a management straightjacket victimising not
weakness of the traditional marketing paradigm, only the marketing theory but also the customer.
embodied in the well-known Marketing Mix frame- Godin [18] considers also the Marketing Mix as an
work proposed by Borden [10] and popularised as obsolete product of the mass marketing, unable to
the 4Ps (Product, Price, Place, Promotion) by promote the personalisation required by modern
McCarthy [11], to provide an adequate platform for marketing.
E-Commerce marketing management. The assump-
tion that the 4Ps framework is widely used by
E-Marketers as the underpinning of their marketing 2 . The need for new E-commerce conceptual
planning is based on the high degree of acceptance frameworks
of the Marketing Mix by marketing practitioners as
¨
the universal marketing paradigm. Gronroos [12, p. Essential differences between the virtual and
323] argues that the 4Ps framework has won an physical commerce have prompted calls for a re-
overwhelming acceptance among marketing prac- evaluation of the existing marketing principles, when
titioners, noticing that ‘‘...Marketing in practice dealing with E-Commerce. According to Hoffman
has, to a large extent, been turned into managing this and Novak [19] ‘‘...marketers should focus on
toolbox ...’’, a point shared by Goldsmith [13, p. playing an active role in the construction of new
178] who argues that the ‘‘...time-honoured con- organic paradigms for facilitating commerce in the
cept of the 4Ps—the Marketing Mix ...’’istheheart emerging electronic society underlying the Web,
of the contemporary marketing management. rather than infiltrating the existing primitive me-
The shortcomings of the 4Ps marketing mix chanical structures’’. Such suggestions, added to the
framework, as the pillar of the traditional marketing objections raised on the role of the Marketing Mix as
management have frequently become the target of the basis of the physical Marketing Management,
intense criticism. Despite the fact that hardly any have prompted several academics and practitioners to
marketing textbook avoids mentioning the 4Ps, more question the potential role of the 4P model for the
than 75% of marketing academics are not satisfied virtual Marketing. These questions are frequently
with it as a pedagogic tool [14, p. 9]. The 4Ps debated in E-Commerce forums and in a growing
framework is also criticised by researchers who number of marketing management textbooks, aca-
identify several deficiencies in dealing with the demic papers and press articles. Two main streams
marketing realities of today. A number of critics are visible in this literature:
even go as far as rejecting the 4Ps altogether,
proposing alternative frameworks. Ohma [15] re-
views the 4Ps from the Strategic Management per- (a) Most writers addressing primarily practitioners’
spective concluding that no strategic elements are to audiences, are usually focussed on outlining and
be found in the model. He proposes that three Cs optimising the management processes by iden-
shape the marketing strategy: Customers, Com- tifying best E-Commerce practices [20–25] or
petitors and Corporation. Bennet [16] suggests that advising on Web design tips [26]. A basically
the 4Ps are focused on internal variables and there- descriptive and process-focused methodology is
fore form an incomplete basis for marketing. He followed by Chaffey et al. [27] outlining the
suggests fiveVs (Value,Viability,Variety,Volume and E-Commerce marketing planning as a process
Virtue) as the criteria of customer disposition, while based on eight decision points. Seybold [28] had
Lauterborn [17] finds the model too product oriented earlier proposed a similar approach while Oliver
arguing that the customer must be placed in the [29] identifies seven E-Commerce laws as the
centre of the marketing planning. One of the most basic parameters of the E-Commerce strategy.

E . Constantinides /Electronic Commerce Research and Applications 1 (2002) 57 – 76 59
(b) Contributions of academics and practitioners 3 . The traditional Marketing Mix paradigm is
focused on E-Commerce marketing have yielded incompatible with E-Commerce
a growing list of articles and books. Some
writers focus their attention on value creation The Internet, as commercial environment, em-
[30,31] while others distillate on the differences braces some of the most substantial developments
and similarities between traditional commercial that took place in the marketing landscape of the last
practices and Web business models [32] or 40 years. The virtual marketplace epitomises the
processes [33]. Angehrn [34] proposes a evolution process from the mass markets of the
strategic model of a merely descriptive and 1960s to the increasingly segmented, niche-domi-
explanatory nature, suitable for diagnosing the nated or even mass-customised, highly interactive
maturity and strategies of E-Commerce sectors and global markets of today. The effect of the new
as well as structuring and detecting opportunities setting is that the focus of marketers has shifted
in individual companies. Another modelling towards satisfying individual and personalised rather
approach is suggested by Huizingh [35] who than collective needs while placing much more
delimits the online commerce issues by the emphasis on customer retention, customer service
Strategic Internet Applications Model (SIAM), and relationship marketing. Such changes follow
the Customer Interaction Cycle (CIC) and the closely the shifting behaviour patterns of new gener-
Accessibility, Design, Offer and Fulfilment ations of individualistic, better informed, wired and
(ADOF) model. Lawrence et al. [36, p. 79] wealthier consumers. Consumers increasingly de-
propose the Marketing Mix as a proper basis of manding more control over the marketing process
E-Commerce marketing activities. [40], value the personalised approach and prefer
products or services that can be promptly adapted to
Despite the growing attention on strategic model- their constantly changing needs.
ling there are still, according to Chaffey et al. [27, p. Having analysed the criticism on the role of the
152], ‘‘...a few appraisals of methods of imple- Marketing Mix as the marketing paradigm in the
menting an Internet marketing plan from an academ- physical world one could argue that this criticism is
ic viewpoint’’. Writers attempting to develop such a reconfirmed when attempting to apply the 4Ps in the
viewpoint often choose for a conservative approach virtual environment. One obvious weakness is the
by resorting on established Marketing Management fact that the model does not explicitly include any
concepts and suggesting ways to convert existing interactive elements [12, p. 324], while interactivity
frameworks into usable concepts for the online is the basis of the Internet Marketing. It can be
Marketing. This approach often emphasises the role argued furthermore that two more important points
of the Marketing Mix 4Ps model as the proper basis are indicating the limitations of the 4Ps in the virtual
of the Marketing Management planning in virtual marketing.
environments. A number of writers suggest that the (1) Applying the Marketing Mix model in tradi-
4P model could constitute the conceptual platform tional markets implies that the four P parameters of
for E-Commerce marketing planning virtually un- the model delimit four distinct, well-defined and
changed [36,37]. Others suggest a few transforma- independent management processes. Despite the
tions in order to adapt the model to the digital consistent effort by many physical businesses to deal
marketplace [38], while O’Connor and Galvin [39] with the 4Ps in an integrated manner, the drafting but
are diagnosing Marketing in a condition of a mid-life mainly the implementation of the P policies remains
crisis and argue that new technologies can improve largely the task of various departments and persons
and optimise the 4Ps-based management process. within the organisation. Even more significant
The obvious explanation for the loyalty of many though is the fact that the physical customer is
writers to the 4Ps model is its undisputed record, typically experiencing the individual effects of each
intrinsic simplicity and comprehensiveness, making of the 4Ps in diverse occasions, times and places,
it a very popular tool among practising marketers as even in cases that companies take great pains to fully
explained earlier. integrate their marketing activities internally.

60 E . Constantinides /Electronic Commerce Research and Applications 1 (2002) 57 – 76
Unlike the physical world,in the virtual mar- and emotional impact of the Web site is an important
ketplace the four elements of the mix are not part of the Web experience and a major factor in
detached from each other.They are heavily attracting and retaining online customers.
interrelated and for all intents and purposes
jointly experienced by the online customer,being 3 .4. Place
merely parts of the content of the Company–
Customer interface,better known as the Web Site. For the majority of E-Commerce cases involving
any form of online interaction–transaction, the Web
This suggestion has important implications for the site is the counter, helpdesk and sales outlet where
customer’s buying behaviour. While the traditional the actual commercial or non-commercial transaction
buyer behaviour model [41, p. 161] considers the 4Ps takes place. Moreover for products delivered in
as the controllable factors likely to influence the digital form (music, information, software and online
conventional consumer’s buying decisions, it is the services) the site fulfills even the task of the physical
Web Experience—the Web experience is the con- distributor by allowing the product delivery online.
sumer’s impression about the online company [42]— The above analysis suggests that attempting to
the factor under the marketer’s direct control likely approach the 4Ps in isolation in the Web environment
to influence the buying behaviour of the online is not a sound strategy, since online customers by
consumer. From the customer’s perspective the Web and large experience them in a simultaneous and
site depicts the very aspects likely to prompt his direct manner, as elements of the Web site-based
reaction to the online offering, the 4Ps being merely customer experience. For Internet customers this
a part of the site based Web Experience and as such experience will include many other elements like
simultaneously experienced by the customer [48]. findability of the site, ease of navigation, prompt
replies to e-mails and easy to use shopping and
3 .1. Product payment procedures and will be the criterion for the
customer to come back to the site or not.
The Web site is the prime online product and (2) The 4Ps Marketing Mix paradigm has been
brand of the online organisation. The customer developed as an operational rather than a strategic
should become aware, develop interest and be per- tool and conventional marketers have always treated
suaded to search for the site/product before going on it as such. In the physical world the strategic
looking into the company’s detailed online offering. management aspects are in effect separated from the
commercial operations due to the very nature of the
3 .2. Price strategic management itself. Most marketers regard
therefore the corporate strategy as an external vari-
The majority of commercial sites function as price able over-imposed to their marketing mix. Applying
lists for the company’s physical product assortment. the 4Ps Marketing Mix model as the sole planning
Besides that, the Web site is perceived by the online platform for E-Commerce operations could mean
prospect and customer as a cost element (due to that the strategic aspects would remain underexposed
connectivity cost,transaction costs, time and oppor- or disregarded altogether. An option for defining the
tunity cost). Although this costs will be in most cases strategy of an online organisation is to follow the
lower than the cost of performing these activities conventional strategic management procedure
physically, the customer will compare these with the [43,44] but two hitches make such an option often
cost of finding other online competitors and doing unattractive for Web marketers:
business with them. •The conventional strategic process is by nature
3 .3. Promotion time consuming and time in the Web is often in
short supply.
The Web site is the promotional medium as well •The volatile, fast changing and constantly
as the promotional content. The communicational evolving nature of the Internet can rapidly

E . Constantinides /Electronic Commerce Research and Applications 1 (2002) 57 – 76 61
outdate conventionally developed strategies have or are considering having a physical presence
making them abruptly obsolete [29]. next to the virtual one.
The Web Marketing Mix approaches the marketing
The customary strategic management processes is planning process in an integral manner, on different
in other words time consuming, inflexible and in levels:
effect inappropriate for the dynamic and unpredict- On strategic level the model identifies the main
able online markets. The shortcomings of the classic strategic issues to be addressed in order to build up a
strategic approach can explain the obvious aversion flexible, value adding and potentially successful E-
for strategic planning by the majority of dot.coms Commerce organisation. The model emphasises the
[45]. Most brick-and-mortars entering the Web on fact that online activities should be assigned their
the other hand would presumably find it more own strategic objectives in line with the corporate
convenient to apply their existing strategic model to ones. Next to that it recommends the highest possible
their Web operations rather than delineating a new assimilation of the online venture into the physical
E-Commerce strategy. In some cases such a policy is corporate commercial strategy in order to capitalise
sensible, in other cases not. British Airways (BA) on the existing organisation’s strengths and competi-
learned the hard way that competing online on the tive advantages.
basis of the existing strategic model with Easy- On operational level the WMM proposes a meth-
Jet.com and other value-oriented airlines was im- od for drafting realistic and consistent Web market-
possible. After the initial poor results of the new BA ing plans. The prime objective of the operational
Web site as a ticket counter the company drafted a planning is the development of a market-oriented,
new strategic approach by launching the low-cost effective, flexible and unique online presence.
offshoot airline Go to compete in the online low- On organisational level the WMM addresses the
budget market. issue of building up the proper organisational, human
A way of solving the Web strategy problem is by and knowledge infrastructure necessary for a smooth
integrating the online strategic planning into the online operation. The model identifies areas where a
operational marketing planning, this way building high degree of integration of the virtual business into
much more flexibility into the system. This would the corporate infrastructure is necessary in order to
mean introducing an E-Commerce ‘micro-strategy’ maximise the synergies between the virtual and
that while in line with the corporate physical strategy physical business and improve the overall organisa-
would be flexible and easily adaptable to fast chang- tional efficiency.
ing online conditions. Next to these three main focus areas the WMM
denotes the need for further improving the competi-
tiveness of the online organisation by seeking syner-
4 . The Web-Marketing Mix (WMM) model gies with ‘complementors’ i.e., third parties or
industries. These complementary firms have been
The Web-Marketing Mix model identifies the recommended by Shapiro and Varian [46] as the
online marketing critical elements and addresses the sixth force to be added to Porter’s five competitive
main E-Commerce strategic, operational and organi- forces model in order to fully understand the com-
sational issues in an integrated and manageable petitive strength and competitive position of firms
manner. The WMM is an appropriate basis for the operating in information markets.
Web Strategic and Marketing planning, especially Finally the model identifies the main technological
intended for click-and-mortars operating in the in the and administrative issues that will underpin E-Com-
Business-to-Consumer segment. The tool is designed merce activities.
primarily for conventional, physical corporations The above-mentioned issues describe the succes-
planning to establish an Internet presence. The model sive steps of the Web commercial planning meth-
can be also useful to pure-plays or existing online odology and are classified in four groups. Each
organisations in re-evaluating their E-Commerce group is labelled by a word beginning with the letter
presence, provided that such organisations already S namely the Scope, Site, Synergy and System